TERM PAPER

ON

MARKETING PLAN

OF

TATA’s WATER PURIFIER

Supervised by: - Submitted by: -

LOVELY PROFESSIONAL UNIVERSITY,

PHAGWARA
 ACKNOWLEDGEMENT

A formal statement of thanks will hardly meet the ends of justice in the
matter of expression of my deep sense of gratitude and obligation to all
those
who helped me in completion of this work.

I would like to express my gratitude to Ms. Kanika Jhamb, Lecturer in

Lovely School of Management, under whose able guidance, control and
supervision I am able to made study fruitful.

In the end only this much can be said:

All might not have been mentioned,

But none is forgotten.

Amrita Kaur
 Contents

Serial No. Particulars

1 Company description

2 Business mission and values

3 Situation and market analysis

4 Competitors

5 Technology

6 SWOT Analysis

7 Porters 5 forces Model

8 Target customers

9 Marketing mix

10 References
 COMPANY DESCRIPTION

Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by

the spirit of nationalism. It pioneered several industries of national
importance in India: steel, power, hospitality and airlines. Tata
companies operate in seven business sectors: communications and
information technology, engineering, materials, services, energy,
consumer products and chemicals. They are, by and large, based in
India and have significant international operations. The total revenue
of Tata companies, taken together, was $70.8 billion (around Rs325,
334 crore) in 2008-09, with 64.7 per cent of this coming from business
outside India, and they employ around 357,000 people worldwide. The
Tata name has been respected in India for 140 years for its adherence
to strong values and business ethics. Going forward, Tata is focusing
on new technologies and innovation to drive its business in India and
internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another Tata company), which in 2008
was ranked the world’s fourth fastest. Anchored in India and wedded to
traditional values and strong ethics, Tata companies are building
multinational businesses that will achieve growth through excellence
and innovation, while balancing the interests of shareholders,
employees and civil society.
 Arroser Guard

‘’Your thirst is our only priority ’’

Arroser is a French word meaning water. It is a Tata company product.

It signifies purity and sanctity. Arroser guard comes with many unique
benefits I.e. Complete protection from all water-borne diseases, great
convenience, and unmatched affordability. Arroser guard water purifier
is the most innovative water purification solution yet developed .It’s
unique Germ kill technology kills all harmful viruses and bacteria and
removes parasites and pesticide impurities, giving you water that's 'as
safe as boiled water’. It assures our family of 100% protection from all
water-borne diseases like jaundice, diarrhea, typhoid and cholera. It
will be further reassured to know that arroser guard meets the
stringent germ-kill criteria of the Environmental Protection Agency
(EPA), the toughest regulatory agency in the USA. The total water
purification market, including industrial, municipal and households, is
pegged at around Rs 10,000 crore. However, the share of household
water purifiers in this is minimal. The filter was designed in a Tata
Consultancy Services lab.
 Benefits of Arroser Guard

Arroser Guard is the result of a combination of breakthrough

technologies. Thanks to state of the art engineering, Arroser Guard
gives you manifold benefits.
• Complete protection from all water-borne diseases
• Great convenience
• Unmatched affordability

Complete Protection
Arroser Guard kills all harmful viruses and bacteria and removes
parasites and pesticide impurities, giving you ‘as safe as boiled water
‘TM. This way, Arroser Guard assures you and your family of 100%
protection from all water-borne diseases like jaundice, diarrhea,
typhoid and cholera. Arroser Guard’s Germkill Battery technology
meets the stringent germ-kill criteria of the Environmental Protection
Agency (EPA), the toughest regulatory agency in the USA.

Viruses Bacteria Parasites Pesticide

Great Convenience
Great Taste
Arroser Guard water tastes great. It gives clear and odour-free water.
Great quality and capacity
Arroser Guard is made with the best quality plastic and has a great
capacity.

Key features Arroser Boiling Leading Candle

Guard process UV inline filter
purifier

Kills/Removes harmful
Viruses

Kills/Removes harmful
Need to
Bacteria
boil for
30-40 min
Kills/Removes harmful
Parasites
(causes amoebae, diarrhea,
etc)

End-of-life indicator

Advanced Auto Switch-off

Great taste

Improves clarity
Removes odour

Doesn't need expensive gas

Low initial cost

Doesn't need an expensive

maintenance contract

Low on-going cost

Business Mission

Our mission is to provide customers with the finest quality water

purifier. We exist to attract and maintain customers. When we adhere
to this maxim, everything else will fall into place. Our services will
exceed the expectations of our customers.

Core values

The five core Tata values underpinning the way we do business are:

• Integrity: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public
scrutiny.
• Understanding: We must be caring, show respect, compassion
and humanity for our colleagues and customers around the
world, and always work for the benefit of the communities we
serve.
• Excellence: We must constantly strive to achieve the highest
possible standards in our day-to-day work and in the quality of
the Unity: We must work cohesively with our colleagues across
 the group and with our customers and partners around the
world, building strong relationships based on tolerance,
understanding and mutual cooperation.
• Responsibility: We must continue to be responsible, sensitive to
the countries, communities and environments in which we work,
always ensuring that what comes from the people goes back to
the people many times over.

Marketing Objectives
• Maintain positive, steady sales growth each quarter.
• Achieve increase in rural market penetration every two quarters.
• Generate brand equity so that arroser guard becomes a household
word within the Rural India also.

Situation Analysis

The Tata is entering its first year of operation in the field of water
purifier. Developing a strategic marketing plan is necessary for the
business to generate sufficient recurring revenue. The company offers
high quality water purifier. These systems provide the healthy,
pleasant taste of filtered water for pennies on the dollar relative to
bottled water. It also provides customers the convenience to fill up
whenever they choose, in whatever type container they prefer.

Market Needs
The Tata is providing high-quality water purifier that is far more
economical and innovative than other water purifiers. The Tata will
offer customers the following important benefits.

• Personal Service: All interactions will be with the salesperson at a

friendly, personal level.
• High Quality: Only quality products will be sold. Moreover
Tata has no desire to sell his customers junk and
ruin his goodwill.

Market Analysis
Safe drinking water comprises of Rs.600 crore domestic water
purification industries and the packaged water business worth is Rs.
1,200 crore. In year 2003, total Indian drinking water market is
estimated to be $2000 million. At present, rural drinking water sector
is a new area for making investments but case studies of different
models working in this sector shows lack of demand in rural areas.

Competitors
There are three major competitors. There are
1. Eureka Forbes
• Joint venture company in 1982 between Electrolux (Sweden) and
Forbes Cam bell (India).
• First brand name was “Aqua guard” (used ultraviolet rays to kill
bacteria and viruses)
• Second brand name was “Pure Sip” (used polyiodide resin to kill
bacteria and viruses)
• Used 2,500 person sales force (directly on households) to sale Aqua
guard and independent dealers to sale Pure Sip

Ion Exchange
• Began operation in 1964, they use brand name was ZERO-B (Zero-
Bacteria)
• ZERO-B purifiers used a halogenated resin technology.
• It helped prevent iodine deficiency diseases and permitted purified
water to be stored up to eight hours without fear of recontamination
• Every year needs to replace the halogenated resin at a cost of Rs.
200.

Singer
• Might be a suitable partner to manufacture and distribute the Delight
purifier
• The product contained nine stages (removed sediments, heavy
metals, bad tastes, odors, and colors, killed bacteria and viruses,
fungi, and nematodes)
• Life of flow rate at 3.8 liters per minute was at 40,000 liters (4.4years
for 25 liters per day), but slower liters per minute was 70,000 liters
(7.6 years for 25 liters per day).
• They described their product as “state of the art”.
• Singer was a well-known and respected brand name in India

Kent

Mr. Mahesh Gupta, MD, KENT RO SYSTEMS LTD, is an alumnus of IIT

Kanpur (Pioneer in bringing revolutionary Reverse Osmosis (RO)
technology to India for the first time, Kent, started in 1995 in Noida,
India. Despite a humble beginning, today Kent is a strong organization
with offices spread across major cities of India. Most importantly, today
Kent has lakhs of satisfied customers to its credit.
Kent mineral reverse osmosis water purifier by a UV purifier purifies
municipal tap/borewell water. The special features of the purifier are as
follows:-
 • Coupled R.O system followed by a UV purifier i.e. double
purification to kill microbiological impurities.
• Total dissolved solids adjusting control valve, which can be
adjusted to the desired TDS of purified water
• 15 lpm purifying capacity
• Fully automatic control

Technology
RO technology based Water Purifiers if used as stand alone system
remove Bacteria, Viruses & Dissolved impurities but other purifiers
while removing dissolved impurities they end-up removing essential
minerals too! These minerals are very important for our health. Also,
usage of RO based Water Purifiers does not allow pores of the RO
membrane to get enlarged, allowing bacteria & viruses to easily pass
through it, thus making purified water free from bacteria and viruses.
The Reverse Osmosis technology is used in areas like Healthcare and
Scientific research where purity is not just important but critical. It has
now been adopted for use in homes and offices to provide the same
level of purity at minimal cost.

Benefits of Arroser guard RO Systems

• Removes toxins, bacteria, virus, suspended solids, dissolved
chemicals etc.
• Makes bore-well water or salty water drinkable.
• Prevents possibility of kidney stones, indigestion, gastric bacterial
diseases etc. by removing harmful contaminants in water.
• Enhances taste by removing undesirable salts.
• Reduces turbidity, coloration in water and removes unpleasant
odour.
• Makes hard water, soft and sweet to taste.
• Purifies water naturally without the use of any chemicals.

SWOT Analysis
The following SWOT analysis captures the key strengths and
weaknesses within the company, and describes the opportunities and
threats facing Tata’s Arroser guard.

Strengths
• Solid base of a company
• A wide range of personal contacts.
• Focused customer attention
• Quality products.

Weaknesses
• Duplicity in the market of the product
• Less awareness of the product
• Labor intensive to make initial sales.
• Currently a limited product line.

Opportunities
• Cover untapped market
• Multi-level business model that generates multiple revenue streams
from associates.
• Customers are typically personal contacts with trust bonds already
formed.

Threats
• Already established network of marketing organizations.
• A change in public perception regarding network marketing
organizations.
• Aggressive competition
• Availability
Porter’s 5 forces model
Threat of new Entrants- High
• Market entry barrier is not high.
• Brand Identity.
• Low cost of capital imposes a Low entry barrier.
• High R&D cost.

Market Exit Barrier is also not so high.

• Intensity of Rivalry among existing Competitors- Very High
• Customer loyalty is very capricious.
• Entry level Advertisement war in water purifiers.
• Low profit margins.
• Perceived lack of differentiation in technologies by customer.

Pressure from Substitute product - Medium

• Packaged drinking water.
• Ground water / Municipal Supplies.
• Chemical distributed by government to clean water.
• Boiled water.

Bargaining power of Suppliers –High

• Supplier's product is an important input to the buyer’s business.
• Number of suppliers are also few.
• Supplier to buyer ratio.

Bargaining power of Buyers–High

• Customers are price sensitive.
• Spreading towards rural areas with increased awareness and health
Consciousness.
• Buyer switching suppliers based on prices and value added
services.

Target customers;
The water purifier has big target audience when compared to other
products. The people now a days concern about their health. So most
of the people realize need for pure water. In home or in an industry,
buying the mineral water or implement new water plant for daily
drinking water usage is easy now. These are the main reason to evolve
this project. The main difficult is how it differs from its competitors?
How it easily available? What are technologies used to purify? How to
use? These are the main problem for every market. But, here the
arroser water purifier. So, most of the people came to know about it
and it will have a good no of customers. In age wise, normally people
who are above 25 ages are more health conscious than youngsters. So
the main target is people above 25 ages.

Positioning
The Tata’s Arroser guard will position itself as a cost effective,
customer centric organization servicing the market need for purified
water. The Tata will leverage its competitive edge to achieve the
desired positioning. The Tata’s competitive advantage is the ability to
generate revenue streams for sellers of the products. This is the virtue
of the network marketing system. With network marketing, if the
buyer becomes a seller, they can receive their products at wholesale
pricing and receive a commission for products that they sell.
Additionally, if they recruit people to help them sell, they get a
commission for every sale that their recruits make.
Marketing Mix
The Tata’s marketing mix is comprised of the following approaches to
pricing, product, place and promotion.

Product
No boiling is required as it undergoes many stages of water purification
process. Moreover, it contains a labeling containing ingredients, batch
number, expiry date etc. suitable for all types of raw water.
Arroser guard in-home purification system
Weight 4.1 Kgs
Top chamber capacity 9 litres
Transparent chamber capacity 9 litres
Material of construction Food safe, non-toxic, engineering plastics

Germkill Battery Kit

Material of Food safe, non-toxic, engineering plastics
construction
Purification capacity The 'Germkill Battery Kit'TM has been designed to give typically 1500 liters of
water at a water temperature of 25°C, in moderate humidity conditions.
Expiry period Two years from date of packaging
Germkill Meets stringent international criteria for microbiologically safe drinking water
performance e.g. Environmental Protection Agency (EPA), USA.
standard

Place
There must be availability of this product. There can be use of two
distribution channel that is primary distribution and secondary
distribution. In first, distribution is made direct to institutes etc. but in
later distribution channels, the chain can be from distributor to retailer
to consumer.

Price
Pricing decisions to be made include pricing strategy, suggested retail
price, volume discounts and wholesale pricing, cash and early payment
discounts etc.
• Arroser guard price: Rs. 2000 only
• It includes one complete 'Germkill Battery Kit'TM worth Rs. 365.
Germkill Battery Kit typically lasts for about 1500 litres. This means on
an on-going basis, you will typically get four litres of water that is `as
safe as boiled water’ for just one rupee (24 paise per litre
only).Compared to other water purification devices, Arroser guard is
surprisingly affordable, yet so advanced.

Promotion
For the promotion of arroser guard, push strategy is to be used. There
are some other ways of advertising the product like ad campaign in
radio, newspaper, use banner, TV ads etc. direct selling can also be
done in this case.

The following are some of the important fact that should concern when
creating advertisement.
1. Natural taste:
Most of the people thought, there is difference taste from the natural
water. But, it’s not true. Because people using natural water for long
period and now it’s not possible to drink directly. So, the advertisement
should tell about there is no taste difference.

2. Technology:
The method like UV, RO is used for purifying the water is technology
introduced. So, the advertisement should tell about which technology
used.

3. Competitors:
The communication should tell about how it different from competitors.
Before making any communication channel, the company should
aware about the competitors like Aqua guard is the major competitor
and their communication channels like advertisement.

4. Brand:
The communication channel is main reason to create and maintaining
the brand image of the company. Here, water purifier from eureka
forbs is main factor to be considered regarding brand and positioning

Communication channels for Arroser Guard

There are several communication channels available to communicate
and promote the products. Here, some of the communication channels
used which can promote the Arroser Guard.
1. Advertising
2. Sales promotion
3. Events & experiences
4. Direct marketing
1. Sales promotion:
The sales promotion for water purifier is such a difficult and important
task. Suppose, a sales manager wants to cut the price, it will affect the
brand image of the product. Because the mother brand has such a nice
brand image in market.

Exhibitions:
Company can conduct exhibitions in not only metro city in small cities
and towns. Normally, the exhibition conduct and suitable for auto
mobile sectors. Here, people should aware about the product.
Company might have this type exhibition in metro cities that also are
the part of other exhibitions. But, here exhibit only for the various
types of water purifiers from the mother brand. For example, conduct
the exhibitions in town. So, the people can know about the product. In
the exhibitions itself, the sales representative demonstrate the
product. It’s the one of the best opportunity to know about the
consumer status towards the product. So, exhibition and
demonstration combined in single place.
.
2. Events& experience:
Arroser guard of Tata should conduct some events and sponsor ship for
some of the events. Here, the company conducts different kind of
events. Now a day’s most of the people know importance of water.
Only problem is to create awareness about the product. Its also not
need in most of the cities. For example, the companies conduct some
sports events among children. For this, the company person goes to
some of apartments in metro cities on holidays and week ends. So, it
will create good relationship among the customers. Similarly, during
festival sessions like diwali, the company people conduct some
entertainment shows among blue color workers because during the
festival period, they think to buy some products to home.

3. Direct & interactive marketing:

Direct marketing is expensive and powerful method in communication
channel. Catalogs, telemarketing, electronic shopping are some of the
important methods which has been already used by the company.
Here, mailing and show rooms can be used for the direct marketing.
When compared to existing direct method, these some what less
expensive.

Mailing:
Mailing is the method of send mail to the many customers or
audiences. That mass mailing to the customers. For this, get the data
base from companies, hospitals and parents of school children. They
are the main target customers as mentioned earlier. Send the mass
mailing and mass message to the customers about the product and
also give information where nearest shop available to buy a product.
Many times, some of the companies send mass mailing, but people
Not even ready to see. To avoid that, send the mail mentioned as area
or shop which are nearer to customer. So the viewer can see what
mentioned about their area.

Show rooms:
The companies start showrooms with service centers. The product like
lakme, vatika hair oil has the show room. So, the company can start
showrooms in all metro cities and some other main cities. It’s also
helpful, when the no. of consumers increased, give service to every
home and not at all possible to appoint such a big no of employees.

4. Advertising;
Advertisement is such a very important for arroser guard to increase
the sales. Advertisement is tool to attract the customers towards their
product and tell about features, how to use, creating awareness and
how it differs from their competitors. There are several type of
advertisements used. Here, some of the new advertisements are
discussed.
I. Print and broad cast ads
ii. Packaging
iii. Bill boards
Iv. Point of purchase
These are some of the new advertisements tool for arroser guard.
Here, TV ads and broad cast ads has been already used. But, change is
need for these two tools. Especially, the current TV ad in which the
person come up with raincoat. That can be changed and implement
new ideas. But at the same time, it should be understand by the
customers. Here, I created some of the advertisement pictures about
Arroser guard water purifier. That can easily under stand and also
innovative.

Competition

There are several different sources of competition:

• Other network marketing companies selling water filters. There are
four to seven other NM firms that also sell water filtration units. Prices
can be competitive.
• Water filters sold through traditional retailers. There are different
manufacturers of water purifier units. These units can be competitively
priced, however, there is not the option to become a sales agent and
get lower purchase prices for yourself as well as a future revenue
stream.

• Bottled water: There are hundreds of companies that sell bottled

water with a reasonable price.

• Soft drinks: While this is not a direct substitute for water, people
drink soft drinks when they are thirsty. Besides the many negative
health issues surrounding soft drink consumption, it is as pricey as
bottled water. Over the last five years the market for water purifier,
typically in the form of bottled water, has exploded. Demand for
filtered water has steadily grown and water purifier’s offer huge price
advantages relative to bottled water alternatives.

References
http://www.wellnessfilter.com/
I:\water water\internet\Eureka Forbes India News _ Water purifier segment gets
bubbly.htm
I:\water water\TATA Swach Price in India - World’s most cost-effective water
purifier.htm
http://www.mouthshut.com/product/categories.php?cid=925346
http://www.google.co.in/search?
hl=en&source=hp&q=water+purifier&meta=&aq=1&oq=water+
http://www.mplans.com/sample_marketing_plans/pottery_dishware_marketing_pl
an/marketing_strategy_fc.php
http://www.scribd.com/doc/4869867/Water-filter-company-marketing-plan

Conclusion

Arroser guard, the most advanced in home water purifier. Arroser

guard a breakthrough offering of Tata, comes with many unique
benefits – complete protection from all water-borne diseases, great
convenience, and unmatched affordability. Arroser guard unique
Germkill Battery technology kills all harmful viruses and bacteria and
removes parasites and pesticide impurities, giving you water that's 'as
safe as boiled water’s. Also, there is a lack of standards for players
existing in the water purifier business inspite of the fact that many
purifiers are being imported from countries such as China and sold by
local players. It assures our family of complete protection from all
water-borne diseases like jaundice, diarrhea, typhoid and cholera.
Arroser guard meets the stringent germ-kill criteria of the
Environmental Protection Agency (EPA), the toughest regulatory
agency in the USA.